MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 3 — 15 Questions

Question 1

A distribution company uses Dynamics 365 Supply Chain Management. They want to improve picking efficiency in the warehouse by grouping multiple orders into a single pick run. Which warehouse process should they configure?

Accepted Answer

Wave processing. Option A is correct because wave processing allows grouping orders into waves for efficient picking. Option B is wrong because load planning is for transportation. Option C is wrong because batch balancing is for production. Option D is wrong because inbound shipment is for receiving.

Answer

Batch balancing

Answer

Inbound shipment management

Answer

Load planning

Question 2

A company using Dynamics 365 Supply Chain Management is experiencing delays in order fulfillment because the picking process is not optimized. The warehouse manager wants to implement a system that directs pickers to the most efficient route based on current warehouse layout. Which feature should be configured to achieve this?

Accepted Answer

Location directives with wave processing. Location directives with wave processing are designed to optimize warehouse picking by directing pickers to the most efficient route based on the current warehouse layout. They use predefined criteria (e.g., zone, location rank, or FEFO) to generate pick work during wave execution, ensuring minimal travel time. This directly addresses the delay caused by an unoptimized picking process.

Answer

RFID (Radio-Frequency Identification)

Answer

Mobile device menu items

Answer

Product filters

Question 3

A manufacturing company uses Dynamics 365 Supply Chain Management. They want to implement a Copilot feature that helps procurement agents draft purchase order lines using natural language. Which feature should they enable?

Accepted Answer

Copilot in procurement. Option A is correct because the Copilot in procurement feature within Dynamics 365 Supply Chain Management is specifically designed to assist procurement agents in creating purchase order lines using natural language prompts. This capability leverages generative AI to interpret user intent and automatically populate order details, streamlining the procurement process.

Answer

Copilot in Sales

Answer

Copilot in Finance

Answer

Copilot in Customer Service

Question 4

A company uses Dynamics 365 Supply Chain Management. They are setting up a new warehouse and want to ensure that items are stored in locations based on their physical dimensions and turnover rate. Which configuration should they use to define storage strategies?

Accepted Answer

Location profiles. Option B is correct because location profiles allow setting storage criteria like dimensions and turnover. Option A is wrong because location formats define naming conventions. Option C is wrong because inventory statuses define item availability. Option D is wrong because warehouse work policies define work creation rules.

Answer

Location formats

Answer

Warehouse work policies

Answer

Inventory statuses

Question 5

A company uses Dynamics 365 Supply Chain Management. They need to track a batch of raw material from receipt to finished goods shipment for quality compliance. Which supply chain process should they use?

Accepted Answer

Batch tracking. Batch tracking in Dynamics 365 Supply Chain Management enables the assignment of unique batch numbers to raw materials and finished goods, allowing the system to trace the material from receipt through production to shipment. This process is essential for quality compliance, as it supports recall management, expiry date monitoring, and detailed genealogy reports that track the entire lifecycle of a batch.

Answer

Transfer orders

Answer

Consignment inventory

Answer

Inventory counting

Question 6

A company uses Dynamics 365 Supply Chain Management. They want to use AI to predict when a critical machine is likely to fail so that maintenance can be scheduled proactively. Which module should they configure?

Accepted Answer

Asset Management. Option C is correct because Asset Management includes predictive maintenance capabilities using AI. Option A is wrong because Production control manages production orders. Option B is wrong because Warehouse management handles warehousing. Option D is wrong because Transportation management manages freight.

Answer

Warehouse management

Answer

Transportation management

Answer

Production control

Question 7

A company uses Dynamics 365 Supply Chain Management. They have multiple vendors supplying the same raw material. The procurement manager wants to automatically allocate purchase orders to the vendor with the best combination of price, lead time, and quality rating. Which feature should they use?

Accepted Answer

Vendor bid analysis. Option A is correct because vendor bid analysis in sourcing can compare multiple criteria. Option B is wrong because purchase agreements are for contracted pricing. Option C is wrong because request for quotation manages quotes but not automatic allocation. Option D is wrong because vendor collaboration is for communication.

Answer

Purchase agreements

Answer

Request for quotation

Answer

Vendor collaboration

Question 8

A retail company uses Dynamics 365 Supply Chain Management to manage inventory across multiple stores. They want to ensure that stock levels at stores are automatically replenished from the central warehouse when inventory drops below a defined threshold. Which planning method should they configure?

Accepted Answer

Replenishment (min/max). Replenishment (min/max) is the correct planning method because it automatically triggers replenishment orders from the central warehouse when inventory at a store falls below a defined minimum threshold, and it stops when stock reaches the maximum level. This method is specifically designed for location-based inventory replenishment in Dynamics 365 Supply Chain Management, ensuring that stores maintain optimal stock without manual intervention.

Answer

Inventory aging

Answer

Demand forecasting

Answer

Safety stock

Question 9

A company uses Dynamics 365 Supply Chain Management. Which TWO features are used to manage the quality of incoming materials?

Accepted Answer

Item sampling. Options A and C are correct. Quality orders are used to inspect items, and item sampling defines the quantity to inspect. Option B is wrong because nonconformance management is for handling defects after detection. Option D is wrong because quarantine zones are for holding questionable items. Option E is wrong because batch attributes are for tracking characteristics.

Answer

Nonconformance management

Answer

Quarantine zones

Answer

Batch attributes

Question 10

A manufacturing company uses Dynamics 365 Supply Chain Management. Which THREE components are required to set up a production process for a discrete manufacturing scenario?

Accepted Answer

Bill of materials. Options A, C, and E are correct. Bills of materials (BOM) define the product structure, routes define the production steps, and production orders execute the process. Option B is wrong because kanban rules are for lean manufacturing. Option D is wrong because costing sheets define cost calculation, not the production process itself.

Answer

Kanban rules

Answer

Costing sheet

Question 11

A distribution company uses Dynamics 365 Supply Chain Management. Which TWO methods can be used to reduce the time taken to receive inbound shipments?

Accepted Answer

Use advanced shipping notice (ASN). Options B and D are correct. ASN allows pre-registering incoming shipments, and mobile device receiving speeds up the process. Option A is wrong because quality orders add time. Option C is wrong because put-away is after receiving. Option E is wrong because cross-docking is a different process.

Answer

Use cross-docking

Answer

Use put-away clusters

Answer

Require quality orders for all receipts

Question 12

Refer to the exhibit. A warehouse manager runs the on-hand inventory report for item P-1000 in warehouse WH01. The report shows zero on-hand quantity but the inventory status is 'Available'. The manager knows that there should be 500 units in stock based on a recent purchase order receipt. What is the most likely cause of this discrepancy?

Accepted Answer

The purchase order receipt has not been registered in the warehouse. Option B is correct because if the purchase order receipt has not been registered in the warehouse, the on-hand quantity is not updated even if the inventory status is 'Available'. Option A is wrong because if the item were on a quality order, the status would be 'Blocked' or similar. Option C is wrong because reserved status would show reserved quantity. Option D is wrong because the location is specified.

Answer

The item is stored in a different location

Answer

The item is reserved for a sales order

Answer

The item is on a quality order

Question 13

Refer to the exhibit. A production scheduler reviews a scheduled production order. Operation 10 on CNC-MACHINE is scheduled from 8:00 to 11:00, and Operation 20 on ASSEMBLY-LINE starts at 11:30. The scheduler notices that operation 20 starts 30 minutes after operation 10 ends. What is the most likely reason for this gap?

Accepted Answer

Setup time for operation 20 is included in the schedule as a separate activity. In Dynamics 365 Supply Chain Management, setup time can be modeled as a separate activity in the route or production order. The 30-minute gap between Operation 10 (CNC-MACHINE) ending at 11:00 and Operation 20 (ASSEMBLY-LINE) starting at 11:30 is most likely the scheduled setup time for Operation 20, which is explicitly represented as a distinct operation or activity in the scheduling engine. This allows the system to allocate time for machine or line preparation without conflating it with run time.

Answer

Buffer time is configured between operations

Answer

The system automatically adds a break for the operator

Answer

Transportation time between resources is configured

Question 14

Refer to the exhibit. A sales representative tries to confirm a sales order for 50 units of item L-5000, but the system does not allow confirmation because the available quantity is only 40. The reservation method is set to Manual. What should the sales representative do to proceed with the order?

Accepted Answer

Manually reserve 40 units and backorder the remaining 10. Option D is correct because the reservation method is set to Manual, meaning the system does not automatically allocate inventory. The sales representative must manually reserve the available 40 units and backorder the remaining 10 units to proceed with the order, which aligns with the manual reservation process in Dynamics 365 Supply Chain Management.

Answer

Create a purchase order for 10 units

Answer

Change the reservation method to Automatic

Answer

Reduce the order quantity to 40 units

Question 15

A furniture manufacturer uses Dynamics 365 Supply Chain Management. They need to ensure that raw materials are replenished automatically when inventory falls below a certain level. Which feature should be configured?

Accepted Answer

Reorder point. The reorder point feature in Dynamics 365 Supply Chain Management triggers automatic replenishment when inventory levels drop to a predefined threshold. This ensures raw materials are reordered without manual intervention, directly addressing the requirement for automatic replenishment when inventory falls below a certain level.

Answer

Vendor collaboration

Answer

Safety stock

Answer

Master planning